Like gluttons in a room filled with decadent desserts, we want it all. Two years removed from such a “tragic and debilitating” recession, the markets are ripping to the upside. The market surge in 2009 was understandable, coming off the lows. However, what we are witnessing today is simply hedonism, stemming from a deep rooted sense of entitlement as a people. I say this without the taste of sour grapes, 75% long going into today’s trade.
We wanted our internet in 2000, until it crashed the economy. Then we didn’t like the internet. So, being the fickle little pickles that we are, we opted to put our money into real estate, fueled by cheap money and zero standards. When that gig was up, we walked away from our investments, without a care in the world. Hey, it wasn’t our problem. Blame those bastard bankers. But the bankers didn’t want to pay either. They said “we are too big to fail and it’s not our fault. Blame the politicians.” The politicians ate it up, partly thanks to all of the money they were getting from the banks, and bailed them out.
Everyone’s happy, right?
Not exactly.
Now everyone wants credit again, since the banks are flush with cash again. Hell, the politicians allowed them to hide their losses and they are getting free money from the Federal Reserve. We want free money too! But the bankers don’t want to lend us anymore money, since they have an easier gig: front running the Fed and buying treasuries with the money that the Fed gives them.
The people of America are outraged by this relationship and the politicians eat it up. They form “Tea Parties” and promise to return American back to its former glory. The people love that idea, especially because the current group of politicians are indolent jackasses. It’s a no-brainer.
But the people are still mad, watching their IRA’s and 401k’s go down. Miraculously, the market ignores all bad news and trades up big, spawning a new form of investor who is unafraid of risk. After all, if the Federal Reserve is handing out next to free money and China is growing at the scientific rate of 9.5% every quarter, hell, nothing can derail stocks.
Like the upright walking pigs that they are, asset managers pile into equities, without fear. They have no fear because it’s not their money at stake, just a bunch of blue collar retards from Dumbville, USA. The folks over at Dumbville are elated with their monthly account statements and begin to open up discount brokerage accounts to get a piece of the action, using discretionary income. They buy all sorts of stocks, like NFLX, AMZN, CRM, or whatever Cramer from CNBC is promoting on a given day. It doesn’t matter that the upright walking pigs, the politicians and the Fed got it wrong during the dot com era and during the collapse of the housing market; because “it’s different this time.”
And the circle of destruction continues…
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The suspense is killing me
Worth the wait, excellent commentary Doctor
Me too…
I will post it
Tomorrow.
Get
To
Bed
Don’t you folks ever go to bed. I’m in Hawaii where it’s 8:30 p.m.
Oh damn.. post it now, Fly… the suspense is killing me. Please.
Yeah … we know you’re up Fly …. throw the rest of us vampires a bone before the sun rises.
lol, check the futures yourselves !
DOW 15000 by eoy!
FIRST!!!!!!!!!!!!!!!!!
yahahahahahahahahahahaha
AT LAST!!!!!!!!!!!!!!
MMmmmmm I love me the smell of some QE2 in the mornin’.
That’s what I’m talkin ’bout
Fly
Your posts criticizing the current goings-on of modern day U.S.A. are getting better by the day!
They make it so easy.
Indeud…
The key word is ‘destruction’.
What a tragedy.
Indeud. Definitely worth the wait.
Why the market is ripping to the upside… insight from Michael Hudson, world economist…
http://michael-hudson.com/2010/10/why-the-imf-meetings-failed/
BRIC countries are receiving excess liquidity, causing their bonds to rise. The Chinese yuan/renminbi are going to rise. Commodities will continue to rise.
All of this until the IMF and G20 come to an agreement that works. I expect we’ll end up with a new world reserve currency that will be backed by carbon credits — just a guess.
US dollar is on the way out now that BRIC countries are working around it and not buying US Treasury bonds. This will cause US equities to rise, with inflation (no monetary gain).
How you like DEM APPERS Hans BRICs??
__________
Carbon credits are a big farce.
Yeah, it’s one thing to base a reserve currency on the FF&C of the American people, and quite another to base it on the ephemeral metrics of “carbon credits.”
If the buck does go down as a reserve currency, it’s more likely you’ll see some kind of commodity basket, with gold at it’s core.
__________
I don’t know… the carbon trading market has really taken off worldwide the last couple of years. The only thing holding back the US is non-compliance with the Kyoto protocols. Wr’re not going to be left out of this market. Obviously not a “big farce” as this market already exists.
When one allows himself to think about possible long term ramifications of the subject of the article, it’s pretty clear that the future is very cloudy and holds a great possibility of very stormy times. I doubt this will end in a neat and orderly fashion. In other words, our current monetary policy is very likely to piss off the rest of the civilized world. The first shots of WWIII have been fired and very few have realized what sound they actually heard.
Who is John Galt?
He’s my backyard-side neighbor. Opthamalogist, hell of a guy.
Having a hell of a time with the moles chewing up his rosebeds this year, however.
________
VXX
Asking Hybrid Score technocrats. Does the daily news override the Hybrid Score or, is there a Hybrid Score for the daily news. If one leans toward the sell the news discipline then today would we register an O/B on the basis of probable election results, CFOs gobbling the Double Irish and Dutch Sandwich, China PMI up, etc.? And then would we sell, capture profits and go for the HO, Hedonism Orgasm?
Eddie is dead ! Rerun of ’87 coming soon.
Van Halen?
Munster?
La Mour?
_________
The Shreddie.
The Fed Gov’t is upside down a Trillion Dollars a year here. That’s $3000/person in the USA. Are you getting your share?
Last night was sureal, not because of halloween but of other indulgences. Now comes the flip side today at work , we are about to go into a meeting with management about the losses of people to that new company that is opening up, this next hour or so should be interesting to say the least, either more money or threats from management. A sign of things to come, i think across america, be back soon..
Sounds like something Scott would have wrote
Oy! Do they speak the Queen’s English in your part of Canuckistan?
I think the above grammatical erreur (sic) is an iBC Mandatory 1-day self-suspension.
_______
Who are these retards going long before Nov 3rd ?!?
Yep….2000 was the Internet Bubble….2007 was Housing….and 2010 is the Commodity Bubble ala China…., I pondered the heck why all these walking pigs would be buying up this thesis with no fear at all…imho, it’s because of the recent history of the Market….we have a recession, then we move up for a few years, then another recession playbook….looking at the trend of the Market we have always moved up, so odds are walking pigs are correct………………..yet, entire thing is not good and such a weak base….oh and for China PMI, there are actually two PMI numbers and the second one was weaker MoM, yet Mainland down 5 days it needed a pop and belief is that RBA will raise tonight (imho, nope they won’t cuz they follow Macro SO MUCH better then our stupid Fed) so they rallied………………….I was reading the actually articles of 1929/1930’s for insight, they got so hurt cuz they believed in the Business Cycle with full faith and it was one of the few times it didn’t work…………………………………………………….for Tea Pary People….they had a good start at wanting to cut cost, but they are like someone that is on a diet and still wants to eat everything…if they would give up cutting taxes and willing to take responsiblity to paying off our debt I would give them more respect…but nope, cut someone elses Medical Benefits BUT DON’T take away my Bush Tax Cut…they are lame.
Well you have Tea Party and then you have LIbertarians. Libertarians are the real Tea Party folks. The non-libertarian Tea Party was created by the media, for the central bankers so they could manipulate public perception. This ensured the average American did not get exposed to anti-central banker philosophy that makes perfect sense. They picked Sarah Palin and Greg Beck as the fake leaders of the fake Tea Party movement. Nevermind that Ron Paul is the leader of the Libertarian movement (aka, the real Tea Party).
Many LIbertarians joined the fake Tea Party, not realizing it was fake. This helped the bankers skew the LIbertarian message.
Greg Beck??
You sure the secret bankers didn’t nominate Jeff Beck? For his licks, etc.?
This is why libertarians will never be more than Democrat electoral insurance, garnering 1% of the vote that has to be made up by the conservative candidate. You obdurate asshats are more into purity than you are into beating down the socialists.
There is no leader of the Tea Party, in fact, there’s no single “Tea Party” extant — that’s the whole idea!
________
so true………………OK I am coming off a Halloween Hang Over and screwed up reading the Official China Govt PMI…that one beat too, logistics federation rose to 54.7 from 53.8 in September, with input prices climbing the most in six months…. second PMI, from HSBC/ Markit Economics, jumped to 54.8 from 52.9………….but China wants to slow down GDP not increase it and Markit report indicates it was from non export.
China Govt’s take on their PMI data http://www.gov.cn/english/2010-11/01/content_1735295.htm
Eloquent. Succinct. Indeud.
if they would give up cutting taxes and willing to take responsiblity to paying off our debt I would give them more respect…but nope, cut someone elses Medical Benefits BUT DON’T take away my Bush Tax Cut…they are lame.
So let me get this straight. You want your free shit, and you want someone else to pay for it? Because let’s be clear. Taxes are a confiscation of legitimate earnings, and free shit from the gov’t is pain-free for the receiver.
You might even have my sympathy (though not my economic agreement) if the “medical benefits” you describe above were not inefficient, healthcare-industry-destroying Obamacare.
But it is, so you don’t.
______________
Great Rally!…oops, never mind.
That meeting lasted an hour and fourty five, and it was as sureal as watching the dead come back to life. The management(very upper),suggested it was a lifestyle choice that was the cause of our problems. And then suggest that start up companies don’t last because they didn’t have deep pockets. And to finish it off that people who left, if they ever came back, MIGHT NOT be hired back regargless of their experience, and then suggest they might hire more people later. Wheres the love brother?
I cant pay home insurance, and this is the bullc**p that they come up with?
Loyalty to the company when the company has no love for its workers? Watch and see how this turns out. Not good i am sure.
There’s nearly 900 billion in cuts I could pick out of the US budget and be done by tomorrow. There’s so much fat in there it’s unbelievable.
Go with the Australian plan enacted 20 years ago where the pension is stringently means tested for the poor only. that would save $350 billion Ensure that medicare is co-paid. this would save around $150 billion.
Get out of Afghan and iraq. that would save $100 billion a year.
Trim $200 billion off the dense budget.
Close down fucking bases like Germany and other shit that is old.
There’s another $100 billion of fat the Demolitionists added to the budget. Cut that.
J – You’ve been away for too long. Everyone here wants “stuff”, but they want someone else to pay for it. There are very few exceptions. I think we drive the bus off of the cliff before we come to our senses and deal with it.
Institute the “Soylent Green plan”.
Thankyou for not listing NASA or basic science research on your hit list.
By means tested, I hope you mean nothing glamourous for those poor enough to apply. Dog food and 8×10 rooms. 4 squares of toilet paper per day, etc.
Why have incentives/rewards for being unproductive and/or not planning ahead?
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